Practice post utme osustech accounting 2018 Past Questions

Question 1

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?

A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

Correct B. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

C. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

D. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

Correct Answer: B

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Question 2

A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.

A. ₦5,000

Correct B. ₦5,500

C. ₦6,000

D. ₦6,500

Correct Answer: B

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Question 3

A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦100,000 Cash ₦50,000 Debtors ₦20,000 Creditors ₦30,000 Capital What is the company's net worth?

A. ₦100,000

B. ₦120,000

Correct C. ₦130,000

D. ₦140,000

Correct Answer: C

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Question 4

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?

A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

Correct B. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

C. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

D. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

Correct Answer: B

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Question 5

A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.

A. ₦5,000

Correct B. ₦5,500

C. ₦6,000

D. ₦6,500

Correct Answer: B

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Question 6

A partnership is formed between two individuals, A and B. Their capital contributions are as follows: A contributes ₦150,000 in cash and a machine worth ₦50,000, while B contributes ₦200,000 in cash and a machine worth ₦30,000. What is the ratio of A's capital to B's capital?

A. 1:1

Correct B. 2:1

C. 3:2

D. 4:3

Correct Answer: B

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Question 7

A company uses a job costing system to account for its manufacturing costs. The following information is available for Job No. 101: Direct Materials: ₦120,000; Direct Labor: ₦80,000; Overhead: ₦60,000. What is the total cost of Job No. 101?

A. ₦260,000

B. ₦280,000

Correct C. ₦300,000

D. ₦320,000

Correct Answer: C

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Question 8

A company maintains a cash book and a general ledger. The following transactions are recorded in the cash book: Cash received from customers: ₦150,000; Cash paid to suppliers: ₦80,000; Cash paid to employees: ₦60,000. What is the net increase in cash?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 9

A company uses the single entry system to account for its transactions. The following information is available: Cash received from customers: ₦200,000; Cash paid to suppliers: ₦100,000; Cash paid to employees: ₦80,000. What is the net increase in cash?

A. ₦20,000

B. ₦30,000

Correct C. ₦40,000

D. ₦50,000

Correct Answer: C

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Question 10

A company uses the self-balancing ledger system to account for its transactions. The following information is available: Cash received from customers: ₦300,000; Cash paid to suppliers: ₦150,000; Cash paid to employees: ₦100,000. What is the net increase in cash?

A. ₦50,000

B. ₦60,000

Correct C. ₦70,000

D. ₦80,000

Correct Answer: C

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Question 11

A company uses the double-entry system of accounting. The following transactions occurred during the year: 1. Purchased office equipment for ₦50,000. 2. Sold goods for ₦200,000. 3. Paid salaries of ₦100,000. 4. Purchased raw materials for ₦150,000. 5. Collected cash from customers for ₦250,000. Determine the correct order of journal entries for these transactions.

A. 1. Purchased office equipment for ₦50,000. 2. Paid salaries of ₦100,000. 3. Purchased raw materials for ₦150,000. 4. Sold goods for ₦200,000. 5. Collected cash from customers for ₦250,000.

B. 1. Purchased office equipment for ₦50,000. 2. Purchased raw materials for ₦150,000. 3. Paid salaries of ₦100,000. 4. Sold goods for ₦200,000. 5. Collected cash from customers for ₦250,000.

C. 1. Purchased office equipment for ₦50,000. 2. Purchased raw materials for ₦150,000. 3. Sold goods for ₦200,000. 4. Paid salaries of ₦100,000. 5. Collected cash from customers for ₦250,000.

Correct D. 1. Purchased office equipment for ₦50,000. 2. Sold goods for ₦200,000. 3. Purchased raw materials for ₦150,000. 4. Paid salaries of ₦100,000. 5. Collected cash from customers for ₦250,000.

Correct Answer: D

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Question 12

A company's trial balance shows the following balances: Debit ₦1,000,000 ₦500,000 ₦200,000 ₦300,000 ₦400,000 ₦600,000 Credit ₦800,000 ₦700,000 ₦900,000 ₦1,200,000 Determine the correct order of journal entries for these transactions.

A. 1. Purchased office equipment for ₦50,000. 2. Paid salaries of ₦100,000. 3. Purchased raw materials for ₦150,000. 4. Sold goods for ₦200,000. 5. Collected cash from customers for ₦250,000.

B. 1. Purchased office equipment for ₦50,000. 2. Purchased raw materials for ₦150,000. 3. Paid salaries of ₦100,000. 4. Sold goods for ₦200,000. 5. Collected cash from customers for ₦250,000.

C. 1. Purchased office equipment for ₦50,000. 2. Purchased raw materials for ₦150,000. 3. Sold goods for ₦200,000. 4. Paid salaries of ₦100,000. 5. Collected cash from customers for ₦250,000.

Correct D. 1. Purchased office equipment for ₦50,000. 2. Sold goods for ₦200,000. 3. Purchased raw materials for ₦150,000. 4. Paid salaries of ₦100,000. 5. Collected cash from customers for ₦250,000.

Correct Answer: D

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Question 13

A company's financial statements for the year ended December 31, 2022, are as follows: Trading Account: ₦1,000,000 ₦500,000 ₦200,000 ₦300,000 ₦400,000 ₦600,000 ₦800,000 ₦700,000 ₦900,000 ₦1,200,000 Determine the correct order of journal entries for these transactions.

A. 1. Purchased office equipment for ₦50,000. 2. Paid salaries of ₦100,000. 3. Purchased raw materials for ₦150,000. 4. Sold goods for ₦200,000. 5. Collected cash from customers for ₦250,000.

B. 1. Purchased office equipment for ₦50,000. 2. Purchased raw materials for ₦150,000. 3. Paid salaries of ₦100,000. 4. Sold goods for ₦200,000. 5. Collected cash from customers for ₦250,000.

C. 1. Purchased office equipment for ₦50,000. 2. Purchased raw materials for ₦150,000. 3. Sold goods for ₦200,000. 4. Paid salaries of ₦100,000. 5. Collected cash from customers for ₦250,000.

Correct D. 1. Purchased office equipment for ₦50,000. 2. Sold goods for ₦200,000. 3. Purchased raw materials for ₦150,000. 4. Paid salaries of ₦100,000. 5. Collected cash from customers for ₦250,000.

Correct Answer: D

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Question 14

A company's financial statements for the year ended December 31, 2022, are as follows: Trading Account: ₦1,000,000 ₦500,000 ₦200,000 ₦300,000 ₦400,000 ₦600,000 ₦800,000 ₦700,000 ₦900,000 ₦1,200,000 Determine the correct order of journal entries for these transactions.

A. 1. Purchased office equipment for ₦50,000. 2. Paid salaries of ₦100,000. 3. Purchased raw materials for ₦150,000. 4. Sold goods for ₦200,000. 5. Collected cash from customers for ₦250,000.

B. 1. Purchased office equipment for ₦50,000. 2. Purchased raw materials for ₦150,000. 3. Paid salaries of ₦100,000. 4. Sold goods for ₦200,000. 5. Collected cash from customers for ₦250,000.

C. 1. Purchased office equipment for ₦50,000. 2. Purchased raw materials for ₦150,000. 3. Sold goods for ₦200,000. 4. Paid salaries of ₦100,000. 5. Collected cash from customers for ₦250,000.

Correct D. 1. Purchased office equipment for ₦50,000. 2. Sold goods for ₦200,000. 3. Purchased raw materials for ₦150,000. 4. Paid salaries of ₦100,000. 5. Collected cash from customers for ₦250,000.

Correct Answer: D

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Question 15

Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method.

Correct A. ₦50,000

B. ₦40,000

C. ₦30,000

D. ₦20,000

Correct Answer: A

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Question 16

A company has the following transactions: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and paid cash of ₦20,000. Prepare the journal entries for these transactions.

Correct A. Debit Purchases ₦100,000, Credit Accounts Payable ₦100,000

B. Debit Sales ₦120,000, Credit Accounts Receivable ₦120,000

C. Debit Cash ₦20,000, Credit Purchases ₦20,000

D. Debit Purchases ₦100,000, Credit Sales ₦120,000

Correct Answer: A

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Question 17

A company has the following balance sheet: ₦100,000 in cash, ₦50,000 in accounts payable, and ₦20,000 in common stock. What is the total equity of the company?

A. ₦70,000

B. ₦80,000

C. ₦90,000

Correct D. ₦100,000

Correct Answer: D

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Question 18

A company has the following transactions: Issued 1,000 shares of common stock at ₦10 per share, and purchased equipment for ₦50,000. Prepare the journal entries for these transactions.

Correct A. Debit Common Stock ₦10,000, Credit Cash ₦10,000

B. Debit Equipment ₦50,000, Credit Cash ₦50,000

C. Debit Common Stock ₦10,000, Credit Cash ₦10,000

D. Debit Equipment ₦50,000, Credit Common Stock ₦50,000

Correct Answer: A

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Question 19

A company has the following transactions: Purchased goods for ₦100,000 on credit, and sold goods for ₦120,000 on credit. Prepare the journal entries for these transactions.

Correct A. Debit Purchases ₦100,000, Credit Accounts Payable ₦100,000

B. Debit Sales ₦120,000, Credit Accounts Receivable ₦120,000

C. Debit Purchases ₦100,000, Credit Cash ₦100,000

D. Debit Sales ₦120,000, Credit Purchases ₦120,000

Correct Answer: A

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Question 20

A company has the following balance sheet: ₦100,000 in cash, ₦50,000 in accounts payable, and ₦20,000 in common stock. What is the total assets of the company?

A. ₦170,000

B. ₦180,000

C. ₦190,000

Correct D. ₦200,000

Correct Answer: D

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Question 21

A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the correct explanation for this discrepancy?

Correct A. The company has an outstanding cheque.

B. The company has deposited cash into the bank but has not yet been credited.

C. The company has an error in its cash book.

D. The company has an error in its bank statement.

Correct Answer: A

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Question 22

A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the total profit for the year?

A. ₦40,000

Correct B. ₦60,000

C. ₦80,000

D. ₦100,000

Correct Answer: B

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Question 23

A government agency has a fixed asset with a cost of ₦200,000 and a useful life of 5 years. The asset is depreciated using the straight-line method. What is the annual depreciation charge?

A. ₦20,000

Correct B. ₦40,000

C. ₦60,000

D. ₦80,000

Correct Answer: B

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Question 24

A company's trial balance shows a debit balance of ₦50,000. However, the balance sheet shows a credit balance of ₦60,000. What is the correct explanation for this discrepancy?

Correct A. The company has an error in its trial balance.

B. The company has an error in its balance sheet.

C. The company has an outstanding cheque.

D. The company has deposited cash into the bank but has not yet been credited.

Correct Answer: A

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Question 25

A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the total profit for the year?

A. ₦40,000

Correct B. ₦60,000

C. ₦80,000

D. ₦100,000

Correct Answer: B

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